Another reason why you need to think twice before using custodial wallet

[tbct_mt2]

They won't know but they will make sure you will tell them and they will force you, they'll require you to explain where the money come from and what activities you do on unregistered exchanges otherwise your money will be seized or frozen. They requires sender ID and recipient ID exactly to identify every activity you're doing on the blockchain which defeats the purpose of the blockchain.

If you did bad and illegal things, it makes sense if centralized exchanges take action to terminate accounts based on their data collection and detection on your fraudulent activities on their platforms. They do that for their business safety first, even before government send any specific orders to their centralized exchanges.

However, it's completely different and contains more risks for users if centralized exchanges take advantage of such rules to play against their users, just to terminate user accounts, freeze user funds, then steal it.

https://www.cryptowisser.com/exchange-graveyard/

When government regulation comes in, it's guaranteed that they'll try to profile you and your activities on the blockchain because they always want to know about you for tax purpose of course and other motives.

When governments want to do regulations, they can change, and upgrade their laws, acts, regulations with time. When there are such existing regulatory ones, if governments feel like it's time for tightening enforcement, they will do that very quickly and harshly.

Be careful using Binance & Centralized Exchange.

[terrific]

If it is with the centralized exchanges registered on their country, they'll know each transaction users do.
But if you're going to avoid them and do it in a not-registered one, will they still know it?
Because to avoid it is to not use these exchanges that they are registered with.
That is not an agenda though, we're all expecting them that they'll always regulate things.

They won't know but they will make sure you will tell them and they will force you, they'll require you to explain where the money come from and what activities you do on unregistered exchanges otherwise your money will be seized or frozen. They requires sender ID and recipient ID exactly to identify every activity you're doing on the blockchain which defeats the purpose of the blockchain.

When government regulation comes in, it's guaranteed that they'll try to profile you and your activities on the blockchain because they always want to know about you for tax purpose of course and other motives.

I agree, they're going to force every user to tell that to them through forceful implementation.
Asking for the txid, imagine doing it every transaction is so crazy.
We're into this space that values privacy and then here they are, breaking that for their compliance to the regulators.
We have choices to make, can avoid or adhere to their policies because it is convenient as a user.